---
title: "Construction Downturn Strategies - Part I: Market Focus"
description: In this 3-part series, we explore strategies to you can use to prepare your construction business for the economic downturn that we all know is coming.
image: https://blog.ascentconsults.com/hubfs/CoDown-1.jpg
---
[](https://ascentconsults.com/)
- [Home](https://ascentconsults.com/)
- Who We Are
- [About Us](https://ascentconsults.com/who-we-are/)
- [Coaches vs. Consultants](https://ascentconsults.com/business-coaches-vs-consultants/)
- [Careers](https://ascentconsults.com/careers/)
- [Client References](https://ascentconsults.com/references/)
- [Resources](https://ascentconsults.com/resources/)
- [Clients](https://ascentconsults.com/clients/)
- What We Do
- [Operations & Performance](https://ascentconsults.com/operations-and-performance/)
- [Growth & Expansion](https://ascentconsults.com/growth-strategies/)
- [Construction Tech](https://ascentconsults.com/construction-software-technology/)
- [Procore](https://ascentconsults.com/Procore/)
- [Investor Services](https://ascentconsults.com/private-equity-consulting-for-construction/)
- [Fractional Executives](https://ascentconsults.com/fractional-advisor/)
- [Podcast](https://ascentconsults.com/construction-hot-takes-podcast/)
- Articles
- [All Articles](https://blog.ascentconsults.com/)
- [Find Work](https://blog.ascentconsults.com/tag/find-work)
- [Win Work](https://blog.ascentconsults.com/tag/win-work)
- [Perform Work](https://blog.ascentconsults.com/tag/perform-work)
- [Business Operations](https://blog.ascentconsults.com/tag/business-operations)
- [Media & Video](https://blog.ascentconsults.com/tag/media)
- [General](https://blog.ascentconsults.com/tag/general)
- [Success Stories](https://ascentconsults.com/success-stories/)
- [References](https://ascentconsults.com/references/)
- [Contact](https://ascentconsults.com/contact/)
MenuClose
MenuClose
[Free Consultations](https://ascentconsults.com/free-consultation/)
- [Home](https://ascentconsults.com/)
- Who We Are
- [About Us](https://ascentconsults.com/who-we-are/)
- [Coaches vs. Consultants](https://ascentconsults.com/business-coaches-vs-consultants/)
- [Careers](https://ascentconsults.com/careers/)
- [Client References](https://ascentconsults.com/references/)
- [Resources](https://ascentconsults.com/resources/)
- [Clients](https://ascentconsults.com/clients/)
- What We Do
- [Operations & Performance](https://ascentconsults.com/operations-and-performance/)
- [Growth & Expansion](https://ascentconsults.com/growth-strategies/)
- [Construction Tech](https://ascentconsults.com/construction-software-technology/)
- [Procore](https://ascentconsults.com/Procore/)
- [Investor Services](https://ascentconsults.com/private-equity-consulting-for-construction/)
- [Fractional Executives](https://ascentconsults.com/fractional-advisor/)
- [Podcast](https://ascentconsults.com/construction-hot-takes-podcast/)
- Articles
- [All Articles](https://blog.ascentconsults.com/)
- [Find Work](https://blog.ascentconsults.com/tag/find-work)
- [Win Work](https://blog.ascentconsults.com/tag/win-work)
- [Perform Work](https://blog.ascentconsults.com/tag/perform-work)
- [Business Operations](https://blog.ascentconsults.com/tag/business-operations)
- [Media & Video](https://blog.ascentconsults.com/tag/media)
- [General](https://blog.ascentconsults.com/tag/general)
- [Success Stories](https://ascentconsults.com/success-stories/)
- [References](https://ascentconsults.com/references/)
- [Contact](https://ascentconsults.com/contact/)
Article Categories
- [Find Work](https://blog.ascentconsults.com/tag/find-work)
- [Marketing](https://blog.ascentconsults.com/tag/marketing)
- [Business Development](https://blog.ascentconsults.com/tag/business-development)
- [Advertising](https://blog.ascentconsults.com/tag/advertising)
- [Win Work](https://blog.ascentconsults.com/tag/win-work)
- [Estimating](https://blog.ascentconsults.com/tag/estimating)
- [Pre-Construction](https://blog.ascentconsults.com/tag/pre-construction)
- [Sales](https://blog.ascentconsults.com/tag/sales)
- [Perform Work](https://blog.ascentconsults.com/tag/perform-work)
- [Project Financials](https://blog.ascentconsults.com/tag/project-financials)
- [Project Management](https://blog.ascentconsults.com/tag/project-management)
- [Safety](https://blog.ascentconsults.com/tag/safety)
- [Software](https://blog.ascentconsults.com/tag/software)
- [Business Operations](https://blog.ascentconsults.com/tag/business-operations)
- [Employee Performance, Retention, Incentives](https://blog.ascentconsults.com/tag/employee-performance-retention-incentives)
- [Finance & Insurance](https://blog.ascentconsults.com/tag/finance-insurance)
- [Growth & Contraction](https://blog.ascentconsults.com/tag/growth-contraction)
- HR, Benefits
- [Recruiting, Hiring](https://blog.ascentconsults.com/tag/recruiting-hiring)
- [Media / Video](https://blog.ascentconsults.com/tag/media-video)
- [Audio](https://blog.ascentconsults.com/tag/audio)
- [Video](https://blog.ascentconsults.com/tag/video)
- [General](https://blog.ascentconsults.com/tag/general)
- [Announcements](https://blog.ascentconsults.com/tag/announcements)
- [Awards & Events](https://blog.ascentconsults.com/tag/awards-events)
- [Industry News & Insights](https://blog.ascentconsults.com/tag/industry-news-insights)
- [Quarterly Newsletters](https://blog.ascentconsults.com/tag/quarterly-newsletters)
This is a search field with an auto-suggest feature attached.
- There are no suggestions because the search field is empty.
# Construction Downturn Strategies - Part I: Market Focus
- Jeff Robertson
- Business Development , Finance & Insurance , Marketing , Business Operations , Find Work , Growth & Contraction
- [No Comments](https://blog.ascentconsults.com/construction-downturn-market-focus#comments-listing)
Do you remember the story of the grasshopper and the ant? [In this ancient fable](http://read.gov/aesop/052.html), the grasshopper spends the summer dancing and playing while the ant works hard to store food for the inevitable winter. When winter comes, the ant is prepared while the grasshopper suffers because he has wasted his opportunity to prepare like his friend the ant.
Those that have been the construction business long enough understand its cyclical nature. We know that every few years we will feel a slow-down. Our current economic boom has now entered its 10th year. It’s the longest expansion any of us have experienced, and we’ve all been enjoying a decade of growth across virtually all geographies and market sectors. A nice payback after the Great Recession!
In case you’re not aware, there is an entire segment of our industry dedicated to watching leading indicators, trying to predict when the next downturn will happen. The fact that we’ve experienced a longer than normal expansion has created some anxiety. Everyone knows it will happen, it’s just a matter of WHEN. No one wants to get surprised. Watching these leading indicators and historical patterns is a good practice. You can refer to [this article](https://www.bankrate.com/personal-finance/smart-money/watch-these-indicators-know-when-recession-could-be-coming/) for 6 leading indicators to watch.
The following links from 3 national industry groups provide a snapshot of their forecasts for 2020 and beyond:
- [ABC](https://constructionexec.com/article/2020-construction-economic-forecast)
- [AGC](https://www.agc.org/sites/default/files/Files/Communications/2020%20Construction%20Hiring%20and%20Business%20Outlook%20Report.pdf)
- [DODGE](https://electricaltrends.com/2020-dodge-construction-outlook-down-key-segments/)
Although there seems to be a consensus that 2020 will continue to be a growth year, it’s never too early to start preparing for the next downturn. Making moves now to prepare your business for the anticipated (but unpredictable and unscheduled) downturn is good business. **In this 3-part series we will touch on strategies you can use to prepare your construction business for the inevitable.**
[Read: Post Coronavirus Construction Predictions](https://www.constructiondive.com/news/consultant-predicts-a-post-coronavirus-construction-tsunami/575351/)
##### Part 1: Business is Local
Although any downturn will impact the [construction economy](https://www.constructiondive.com/news/construction-leaders-increasingly-vigilant-as-economy-hints-at-downturn/568637/), it will not be felt uniformly across the nation. It will affect some areas of the country, and some market sectors, more than others. Some market sectors will dry up while others will flourish. Certain areas of the country will experience more or less effect than others due to our diverse economy. Stated plainly, an economic shift will look different in California than it will in Texas, New York, or Georgia.
This graphic from [FMI](https://www.fminet.com/) represents a projection of where activity will be concentrated throughout the US over the next 5 years:
Diversifying your business by either entering new markets (geographically, market sectors) or creating new revenue streams (adding services, project types) are excellent strategies for riding out a downturn.
[](https://info.ascentconsults.com/meetings/acooper/30-minute-performance-consultation)But how does a construction business or contractor determine what areas, services and sectors to remain in and which ones to enter? **Your first step is to understand what drives the economy in your neck of the woods and then ask yourself:**
- What market sectors are we in now?
- How do we procure our work in that sector?
- What is the barrier to entry for new competition?
- How might an economic downturn affect the sector(s) we work in?
- How might a shift in the economy affect my city or region?
**Once you have analyzed your current state, ask yourself:**
- What market sectors might fare better in a downturn?
- Are those sectors close to what we do now?
- Who do we know that’s already in that market or sector, or who would be our competition?
- How can we position ourselves to already be in that market BEFORE others?
- What can we do now to break into that market?
**Fact**: It takes time and resources to break into new markets and sectors. If you wait until you’re already feeling the effects of a slowdown, it’ll probably be too late to learn new skills, shift your workforce, establish competency, or gain a foothold in that market.
Financial [market](https://blog.ascentconsults.com/top-5-essentials-construction-marketing) and economic corrections are beyond your control as a business leader. However, you do have control over your services and where and how you deploy your resources. Being brutally honest about how balanced your business is to withstand market corrections is something that should be analyzed annually as part of your overall business planning and strategy process.
[](https://cta-redirect.hubspot.com/cta/redirect/2239892/93d3d075-8712-4df7-ba95-44f2642af2d4)
Ready to start planning your downturn strategy but not sure where to start? The team as Ascent Consulting is here to help.
[Book your FREE performance consultation now](https://info.ascentconsults.com/meetings/acooper/30-minute-performance-consultation).
---
If you're ready to start working on your business, let's talk!
[](https://cta-redirect.hubspot.com/cta/redirect/2239892/1bf40821-1d1b-41de-bc7c-0970d07328e8) [](https://cta-redirect.hubspot.com/cta/redirect/2239892/855c34a7-6832-4fbc-9e73-993ba8204f7a)
Ascent Consulting’s mission is to **Build Better Construction Companies**.
We are committed to delivering impressive results in the areas of
**profitability, performance and growth**.
Posted by [Jeff Robertson](https://blog.ascentconsults.com/author/jeff-robertson)
Construction expert Jeff Robertson brings 30+ years of industry knowledge to his consulting projects. He's worked in many sectors ranging from healthcare and retail to multi-family and senior living.
- Share
### Leave a Comment
Your email address will not be published. Required fields are marked \*
This is a search field with an auto-suggest feature attached.
- There are no suggestions because the search field is empty.
### Latest posts
[](https://blog.ascentconsults.com/doers-who-struggle-to-teach-a-construction-project-management-problem)
[The Doers Who Struggle to Teach: A Construction Project Management Problem](https://blog.ascentconsults.com/doers-who-struggle-to-teach-a-construction-project-management-problem)
[](https://blog.ascentconsults.com/not-all-erp-integrations-are-created-equal)
[Not All ERP Integrations Are Created Equal](https://blog.ascentconsults.com/not-all-erp-integrations-are-created-equal)
[](https://blog.ascentconsults.com/not-the-lowest-bidder-win-the-job-anyway-with-strong-construction-branding)
[Not the Lowest Bidder? Win the Job Anyway with Strong Construction Branding](https://blog.ascentconsults.com/not-the-lowest-bidder-win-the-job-anyway-with-strong-construction-branding)
### Categories
- [Business Operations (68)](https://blog.ascentconsults.com/tag/business-operations)
- [Finance & Insurance (43)](https://blog.ascentconsults.com/tag/finance-insurance)
- [Perform Work (37)](https://blog.ascentconsults.com/tag/perform-work)
- [Project Management (33)](https://blog.ascentconsults.com/tag/project-management)
- [Project Financials (28)](https://blog.ascentconsults.com/tag/project-financials)
#### Follow Us
-
-
-
-
-
We build better construction companies.
[Schedule a FREE Consultation](https://cta-service-cms2.hubspot.com/web-interactives/public/v1/track/click?encryptedPayload=AVxigLJQm1hGso67nQoK2XYBT4h58W8AphNMxMENHfCaNKJDdoqxQ5p9PdXCmw1WRpfd8sQdXmzwV4mEqmyOKx%2BBrhru6gWwhbhTCXJvtE0xOGZ0v0Dx3sg6fa%2F48CDRBEQzKqujJ6zR%2BunOAyhLoofq2VtsurRMe4PJEwAY%2BdxT%2FYQvM9kWqVdoB9Zr5i0GAy3XFdAXFNUQooadBcp7gmvMy%2BwXpVt8L9HoCoE%3D&portalId=2239892)
##### Contact Us
- [info@ascentconsults.com](mailto:info@ascentconsults.com)
- [(404) 566-5855](tel:(404)205665855)
##### Our Location
400 Interstate North Pkwy,
Suite 500, Atlanta, GA 30339
##### Follow Us
Posted by [Jeff Robertson](https://blog.ascentconsults.com/author/jeff-robertson)
Construction expert Jeff Robertson brings 30+ years of industry knowledge to his consulting projects. He's worked in many sectors ranging from healthcare and retail to multi-family and senior living.
Facebook [LinkedIn](https://www.linkedin.com/in/jeffrobertson72/) Twitter
Website
```json
{
"@context" : "https://schema.org",
"@type" : "BlogPosting",
"author" : {
"@type" : "Person",
"name" : "Jeff Robertson",
"url" : "https://blog.ascentconsults.com/author/jeff-robertson"
},
"dateModified" : "2023-02-17T17:04:05.368Z",
"datePublished" : "2020-02-17T18:38:51.000Z",
"headline" : "Construction Downturn Strategies - Part I: Market Focus",
"image" : [ "https://blog.ascentconsults.com/hubfs/CoDown-1.jpg" ],
"mainEntityOfPage" : {
"@id" : "https://blog.ascentconsults.com/construction-downturn-market-focus",
"@type" : "WebPage"
},
"publisher" : {
"@type" : "Organization",
"logo" : {
"@type" : "ImageObject",
"url" : "https://blog.ascentconsults.com/hubfs/AscentNewLogo-1.png"
},
"name" : "Ascent Consulting"
}
}
```
```json
{
"@context": "http://schema.org",
"@type": "BlogPosting",
"mainEntityOfPage":{
"@type":"WebPage",
"@id":"https://blog.ascentconsults.com/construction-downturn-market-focus"
},
"headline": "Construction Downturn Strategies - Part I: Market Focus",
"image": {
"@type": "ImageObject",
"url": "https://f.hubspotusercontent40.net/hubfs/2239892/CoDown-1.jpg"
},
"datePublished": "2020-02-17 18:38:51",
"dateModified": "February 17, 2023, 5:04:05 PM",
"author": {
"@type": "Person",
"name": "Jeff Robertson"
},
"publisher": {
"@type": "Organization",
"name": "Ascent Consulting, Inc.",
"logo": {
"@type": "ImageObject",
"url": "https://cdn2.hubspot.net/hubfs/2239892/AscentNewLogo-1.png"
}
},
"description": "In this 3-part series, we explore strategies to you can use to prepare your construction business for the economic downturn that we all know is coming.
"
}
```